Gift Tax Filing is a complicated and often overwhelming effort by many Estate Planning Professionals. The many possible exclusions, complicated circumstances, and other factors make filing a gift tax return best left to a seasoned professional. Here at Objective, our team includes some of the top Gift Tax Advisors to be found. Highly experienced and versed in the most up-to-date California laws, our Gift Tax Advisors have proven to be extremely effective in utilizing tax laws for both private individuals and Estate Planning Professionals. The Objective Gift Tax Advisors team has extensive experience in an array of Gift Tax scenarios, managing strategies for appeals, and audits. They work aggressively toward the most favorable outcome for every client.
We are available daily. Schedule a consultation with one of our trusted Gift Tax Advisors.
What does California consider a gift?
A gift is defined as a gift in which the passing of value in the form of money or property to a person or entity and not expecting or requiring a repayment. There are many examples such as retirement accounts, bank accounts, brokerage funds. Stocks, bonds, jewelry, homes, cars, and low to 0 interest loans.
The gifting of large amounts of money and or high-value property will be considered by the IRS as a taxable event. Large loan amounts with interest rates lower than the Federal rates are also considered taxable gifts. The selling of valuables and property below market value can result in the same.
Taking advantage of the annual gift tax exclusion.
The annual gift tax exclusion, set by the IRS allows individuals and spouses to gift to their children and grandchildren without accruing gift taxes. The amount that can be gifted is doubled when it is a joint gift between spouses. Exceeding the exclusion amount would require reporting that amount to the IRS using Form 709 or what is known as the U.S. Gift Tax Return.
If an individual exceeds the lifetime gifts threshold, the IRS applies a gift tax.
What are the lifetime gift and estate tax exemptions and how do they work?
The lifetime gift tax exemption refers to how much you can give during your life before having to pay gift taxes. The IRS totals all the gifts in one lump sum and taxes on the amount that exceeds the lifetime exemption. The tax rate is generally between 18 and 40 percent.
Leaving behind estates is also considered a gift and can greatly exceed your lifetime gift tax limits. It is called the lifetime gift and estate tax exemption for this reason. Leaving valuables, cash, and property may also trigger a gift or estate tax.
What is not considered a gift tax?
The IRS will generally not consider donations toward non-profits as taxable gifts. If your spouse is a U.S. Citizen, you can transfer an unlimited amount of valuables, property, and cash tax-free. The payment of tuition directly to the institution will not count against your gift tax lifetime exclusion. If it is paid directly to the student, this may trigger a taxable event. The same goes for covering persons qualifying medical expenses. The payment must be given directly to the Medical Institution. It is always best practice to seek the advice of experienced Gift Tax Advisors as the laws may vary from state to state.
How we do it.
- Senior Commitment
Commit senior investment bankers with industry-specific experience to your sale
- Meaningful Insight
Deliver detailed insights to you up-front on valuation, industry trends, and risks
Leverage relationships with active strategic and financial acquirers to work to attempt to create a competitive sale process
- Premium Value
Provide M&A tactics and strategies that are designed to maximize negotiation leverage
Dig deep to understand your unique sale and post-sale objectives and utilize them as the success benchmarks that shape and guide the entire process
Tell your company’s unique story in such a way that acquirers understand, in detail, the full future value your company holds